Draft CIP-03: Proposal to vote for "set minter to dev_multisig" (3 days to vote)

Background
COVER is a governance token of a protocol that completing the open-finance puzzle: Unstoppable coverage, protecting participants against unexpected incidents.

COVER v2 by the team :

  • Specific, isolated risk within protocols (ex: each Yearn vault can have its own covToken coverage)
  • Bundled protocols (ex: CurveAaveYearn bundle)
  • Amplified liquidity
  • Dynamic fees
  • Expansion into real-world coverage (multiple CVC groups)

COVER v1.1 by Andre Cronje :

  • Perpetual coverage (audit is done, pending to launch)

COVER integration with Yearn v2 :

  • Integration with COVER API
  • Supported Cover Protocol lists updates automatically
  • Supports price/purchasing slippage calculations

Summary
While waiting for further releases on the above (Q1 - early Q2 2021) COVER holders can align the supply-demand of the governance token, incentivising positive constructing ideas and accumulating fund for sustainable development. The result of this proposal can be revisited whenever major changes affect the protocol or its governance holders.

Motivation
There are a set of COVER tokens which are yet to be claimed and they should not be just left being unused. These unclaimed COVER are better off used for future incentives instead of just having them being unclaimed. In order for this to happen, the minter key should be set to be held by Cover Protocol’s development team’s multisig.

Specifications
Remove minting rights from COVER distributor and set to dev multisig

If you are reading this and have not redeemed your COVER tokens, please do so before the decided date.
After the poll ends, it will be moved to a snapshot vote to finalize the governance decision.

To vote on the decision
    1. Remove minting rights from COVER distributor and set to dev multisig
    1. Remove minting rights from COVER distributor and set to 0x0
    1. Do nothing

0 voters

To vote on the transfer date to dev_multisig
    1. 31 January 2021
    1. 28 February 2021
    1. 31 March 2021

0 voters

3 Likes

I also think this is a very good idea. Let’s revive a market that has clearly been hit hard by the exploit.

3 Likes

The wording of that proposal isn’t clear. I wish a normie and not a dev had written it.

Option 1: let team have minting ability but require multisig to reduce possibility of misuse. Rug is still possible if majority of multisig members collude. They get to retire rich af. Also, this option creates a lot of extra tokens for the treasury that will be 100% sold on the market at some point and harm price.

Option 2: get rid of minting by team forever and lock max supply at 72k forever. Watch cover moon.

1 Like

This was written by a community member, not any dev or member of the team.

2 Likes

So option 1 is revert to pretty much pre-exploit, with more tokens, and rug/exploit opportunities? Or option 2 no rugs ever and the token value increases? Im sure Andre advised the team to end shield mining for a reason? Im sure it was about generating some liquidity organically rather than with giving away tokens. Is this proposal disagreeing with Andre and the advice he gave the team?

Im not in favour of this in the slightest, unless we come out with a maximum of 72k tokens, as Andre advised.

I believe we should not mint any more.

1 Like

First off, my initial reaction is I’m for the 0x0. I think you’ll find that that is the kneejerk reaction of any smalltime holder, because well, with dev multisig you end up feeling like your holding might be diluted. This also feels oddly similar to similar situations on other platforms.

However, I’d love to hear a team members take on this. I clearly see how you would want to be able to use COVER as a means towards giving developers, partners, etc. “payment” in form of “shares” of COVER. How vital would this kind of delegation be to the continued effort of COVER? I’m open to being convinced otherwise, but of the top of my head I’m voting 0x0.

1 Like

Yeah I think option 1 is best for long term growth or Cover.

This already is included in 70200 supply, you didnt understand. If all this tokens get into circulation, it bring us to max supply of 70200. Its not extra tokens.

Also we can easily decide later on to burn those tokens if we want. The point is to scalp this tokens away from the people that dont want redeem their old tokens for COVER and put them in hands of community.

3 Likes